Crypto Brokers Types

ECN, STP, NDD, DD, Market Makers

The list below illustrates the various categories of brokers classified depending on their execution method.

ECN

ECN BTCUSD Account stands for Electronic Communication Net-work, these ECN BTCUSD Account brokers are connected to the interbank network directly through an electronic communication network & orders from the ECN BTCUSD Account are placed straight to the electronic network. ECN BTCUSD Account will display different orders from different banks. Bitcoin trading quote placed by these ECNs net-work of banks are direct from them to the inter bank network & orders are executed directly to the interbank market once a trader trading with this ECN account opens an order with their broker,

ECNs trading account will charge commissions + spreads for every btcusd crypto trade. For these ECN Bitcoin Crypto Currency Trading Account execution technique every trade is matched to another in realtime over inter bank net-work - ECN Network.

STP

STP BTCUSD Crypto Currency Trading Account stands for Straight Through Processing, the STP BTCUSD Account brokers will send the client orders direct to their Bitcoin Liquidity Provider, the BTCUSD Crypto Liquidity Provider is a big bank with deep trading liquidity to trade on the inter bank net-work market.

An STP BTCUSD Account provided by an STP broker can either have one BTCUSD Crypto Currency Liquidity Provider or many liquidity providers.

The best thing about STP BTCUSD Accounts is that traders can place their cryptocurrency trades immediately with instant execution because they have access to inter bank market via their STP online broker.

STP BTC USD Crypto Accounts will not charge commissions, but will charge spreads on cryptocurrency trades. Because Bitcoin Crypto Currency traders have access to the interbank markets execution, there no re-quotes on the orders neither any order waiting for execution, the trade order execution is instant.

Difference between STP and ECN Execution

NDD

NDD stands for Non-Dealing Desk bitcoin execution of orders, these NDD BTCUSD Account btcusd brokers do not implement a dealing desk and this is what makes this type of order execution model to have less restrictions as opposed to Dealing Desk Order Execution Model.

NDD Order Execution means that trades from the traders account will be executed directly to the interbank exchange btcusd market. Orders will be matched with other orders in the online cryptocurrency market using the broker NDD order execution trade model.

DD means dealing desk, these DD brokers have a dealing desk execution model where they can match orders & execute btcusd crypto order in the online btcusd crypto market.

The bitcoin trader trading with a DD account will get a lot of requotes.

Dealing Desks will issue bitcoin traders with a lot of trading order requotes, meaning bitcoin prices of orders are not real time and the cryptocurrency broker can requote a bitcoin trader's order if the bitcoin price of the btcusd market changes quick enough before the online broker's dealing desk places the order online or before they match the order in online bitcoin market.

Dealing Desk trading accounts therefore means that the order execution of cryptocurrency orders is not instant and therefore this execution model might mean that orders executed using a DD BTCUSD Account are not executed as quickly as when compared to an ECN trading account or an STP account.

Market Makers

MM are broker accounts where Market Maker brokers have a dealing-desk execution model where they can match orders in-house without going to the online bitcoin market.

Bitcoin orders also can be executed against their traders - meaning the cryptocurrency broker can take the opposite side of a bitcoin traders open trades. This cryptocurrency broker can make the decision to either execute a order that is the opposite of a bitcoin trader's order thus if the trader makes a loss the broker makes a profit, & if the trader makes a profit the online broker makes a loss.

Regulated Online Brokers

Regulated Online Brokers are those that operate under a financial regulatory authority, these companies will adhere to a strict code of ethics lest they lose their operating license, these are the genuine companies that are trusted by traders as they do not carry out unshady practices against their clients because they are audited by their regulators annually

Regulated + STP Execution is the best choice to trade with.

Crypto Brokers Type - Brokers Types - ECN, STP, NDD, DD, Market Makers - Bitcoin Liquidity Provider - Cryptocurrency Liquidity Providers

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Crypto Brokers Types

ECN, STP, NDD, DD, Market Makers

Regulated Online Brokers